Science policy in changing times: are governments poised to take full advantage of an institution in transition?

While it is widely acknowledged that the institution of science is currently undergoing a major transformation, there remains reluctance in many sectors to embrace the changes and maximize the utility of science and its role in economic growth. The transformation of science is driven by economic factors rather than those value-based. Accordingly, confusion and contradiction in science policy statements become apparent when the structure of science policy and the mechanisms that aim to support collaborative arrangements of science are examined. Historical and cognitive evidence shows the distinctions of “applied” and “basic” research are human constructions and, as such, have become a handicap to the emerging knowledge-based economy. It is concluded that, if the economic and social benefits of integrated arrangements in knowledge production are to be realized, there is a pressing need to modify the current institution of science and the policies that would underlie it.